Problem V: Neighbors Helping Society (NHS) is a voluntary health and welfare organization. The events happened...

 

Transcribed Image Text:

Problem V: Neighbors Helping Society (NHS) is a voluntary health and welfare organization. The events happened in 2020. 1. CONTRIBUTIONS: NHS received unrestricted cash contributions of $4,000 and unconditional promises to give totaling $6,000. Of this $6,000 contribution receivable, $2,000 is not collectible until 2021. NHS estimates that 10% of the pledges will be uncollectible. NHS collected $3,600 of the contributions receivable due in 2020 and wrote off the remaining $400 as uncollectible. 2. DONATED LONG-LIVED ASSETS: On January 1, 2020, Martin Construction donated a used van to the organization. The fair value of the van is $1,500, and it has a three-year remaining useful life. The van will be used in the organization's community service program. 3. SPECIAL EVENT FUND-RAISERS: A fund-raising event for NHS featured a dinner and dance. Ticket sales for the dinner totaled $950, and expenses of the fund-raiser amounted to $650. 4. MEMBERSHIP FEES: NHS offers regular memberships for $10 and sustaining memberships for $50 and over. All members are entitled to the same newsletter and local discount coupons that are distributed when the dues are received. NHS received 500 regular memberships ($5,000) and 130 sustaining memberships ($6,500). 5. DONATED SECURITIES AND INVESTMENT INCOME: NHS receives securities (fair value of $5,000) with a stipulation that they permanently endow a park enhancement project. Income earned on the securities is restricted to use for the park enhancement project. Dividend income is $475. 6. SUPPLIES: NHS had supplies on hand of $1,600 at January 1, 2020. The organization purchased supplies for $1,500 during the year and received donations of supplies that had a fair value of $2,050 in addition to the $390 already received. At the end of 2020, the inventory on hand was $750. The supplies used were allocated to recreation programs, $2,000; community service programs, $1,400; fund-raising expenses, $600; and general administration, $790. 7. DEPRECIATION: NHS's equipment owned has been recorded as an unrestricted asset. The organization allocates the $8,000 depreciation expense on the equipment to its programs and general administration as follows: $3,000 to recreation program, $4,000 to community service, and $1,000 to management and general. 8. FIXED ASSET PURCHASE WITH RESTRICTED RESOURCES: NHS purchased equipment costing $4,000. The equipment was financed by $3,000 from contributions with donor-imposed restrictions that were accumulated for purchase of the equipment and $1,000 from general resources. Instructions: Prepare entries, in general journal form, to record the transactions for 2020. Problem V: Neighbors Helping Society (NHS) is a voluntary health and welfare organization. The events happened in 2020. 1. CONTRIBUTIONS: NHS received unrestricted cash contributions of $4,000 and unconditional promises to give totaling $6,000. Of this $6,000 contribution receivable, $2,000 is not collectible until 2021. NHS estimates that 10% of the pledges will be uncollectible. NHS collected $3,600 of the contributions receivable due in 2020 and wrote off the remaining $400 as uncollectible. 2. DONATED LONG-LIVED ASSETS: On January 1, 2020, Martin Construction donated a used van to the organization. The fair value of the van is $1,500, and it has a three-year remaining useful life. The van will be used in the organization's community service program. 3. SPECIAL EVENT FUND-RAISERS: A fund-raising event for NHS featured a dinner and dance. Ticket sales for the dinner totaled $950, and expenses of the fund-raiser amounted to $650. 4. MEMBERSHIP FEES: NHS offers regular memberships for $10 and sustaining memberships for $50 and over. All members are entitled to the same newsletter and local discount coupons that are distributed when the dues are received. NHS received 500 regular memberships ($5,000) and 130 sustaining memberships ($6,500). 5. DONATED SECURITIES AND INVESTMENT INCOME: NHS receives securities (fair value of $5,000) with a stipulation that they permanently endow a park enhancement project. Income earned on the securities is restricted to use for the park enhancement project. Dividend income is $475. 6. SUPPLIES: NHS had supplies on hand of $1,600 at January 1, 2020. The organization purchased supplies for $1,500 during the year and received donations of supplies that had a fair value of $2,050 in addition to the $390 already received. At the end of 2020, the inventory on hand was $750. The supplies used were allocated to recreation programs, $2,000; community service programs, $1,400; fund-raising expenses, $600; and general administration, $790. 7. DEPRECIATION: NHS's equipment owned has been recorded as an unrestricted asset. The organization allocates the $8,000 depreciation expense on the equipment to its programs and general administration as follows: $3,000 to recreation program, $4,000 to community service, and $1,000 to management and general. 8. FIXED ASSET PURCHASE WITH RESTRICTED RESOURCES: NHS purchased equipment costing $4,000. The equipment was financed by $3,000 from contributions with donor-imposed restrictions that were accumulated for purchase of the equipment and $1,000 from general resources. Instructions: Prepare entries, in general journal form, to record the transactions for 2020.

Answer rating: 100% (QA)

Neighbours Helping Society is a voluntary health and welfare organization There are some events occu... View the full answer